The Canadian dollar traded in a positive territory on Friday, after data showed that Canada’s consumer price inflation was steady in August.
Data from Statistics Canada showed that Canada’s consumer price index rose 1.3 percent on year in August, the same rate as in July. That matched economists expectations.
The Bank of Canada’s core consumer price index advanced 2.1 percent in August, in line with forecasts. In July, the CPI grew 2.4 percent.
On a monthly basis, consumer prices came in flat in August, while the Bank of Canada’s core consumer price inflation grew 0.2 percent. Both the readings were in line with forecasts.
Meanwhile, crude oil prices declined by $1.61 to $45.29 per barrel, after the Federal Reserve gave a cautious assessment of the global economy.
“The outlook abroad appears to have become more uncertain of late, and heightened concerns about growth in China and other emerging market economies have led to notable volatility in financial markets,” Fed Chairwoman Janet Yellen said in a statement.
The loonie showed mixed performance in the Asian session. While the loonie advanced against the greenback and the euro, it held steady against the yen. Against the aussie, the loonie declined.
In European trades, the loonie recovered to 91.73 against the Japanese yen, reversing from an early 2-day low of 90.79. The pair ended Thursday’s deals at 91.03. On the upside, 93.00 is seen as the next possible resistance for the loonie.
The loonie was trading higher at 1.4884 against the euro, after falling to 1.5068 in Asian morning deals. If the loonie extends gain, 1.47 is possibly seen as its next resistance level.
Eurozone current account surplus declined in July as the deficit on secondary income widened from June, according to a report from the European Central Bank.
The current account surplus decreased to EUR 22.6 billion in July from EUR 24.9 billion in June.
The loonie held steady against the greenback, following an advance to a 5-week high of 1.3012 at 6:45 am ET. At yesterday’s close, the pair was valued at 1.3181.
Meanwhile, the loonie that fell to 0.9509 against the aussie in pre-European deals has been fluctuating thereafter. The aussie-loonie pair closed yesterday’s trading at 0.9453.
Looking ahead, U.S. leading indicators for August are due at 10:00 am ET.
The material has been provided by InstaForex Company – www.instaforex.com